6 Tips for First Pass Approval When Submitting a Non-Delegated MI Application

Underwriting non-delegated loans requires a lot of diligence and consideration to ensure a successful first pass approval. When you submit a MI application with us or your integration, we have resources to help you get your non-delegated loan submission approved the first time. We understand how important it is to be effective and efficient, saving you time and ensuring you and your borrowers meet crucial deadlines.

Expedite your non-delegated MI application process by ensuring you have all the needed documentation when you submit. Use this checklist as you gather loan file documentation to submit with your non-delegated applications.

What is non-delegated underwriting?

A non-delegated underwriting service is provided when the lender chooses a mortgage insurance provider, say Enact for instance, to perform the risk underwrite and render a decision on their behalf. Our Mortgage Insurance (MI) Only Flow Non-Delegated Underwriting team supports lenders with underwriting services performed to Enact Guidelines.

To underwrite a non-delegated loan, you have to collect all the documentation you normally request from a borrower to underwrite the loan. This may include pay stubs/VOE, W-2s, bank statements, appraisal, tax returns and purchase contract if applicable.

Want more information about non-delegated MI underwriting (and delegated underwriting) and to familiarize yourself with their benefits and differences? Access a helpful blog here!

Tips for first pass approval

When you’re working with non-delegated loan submissions, achieving a first pass approval is key. But that doesn’t mean mistakes aren’t part of the process. Diligence, proactivity and knowing what your resources are and who can help you are crucial to your success.

To help you streamline and improve your process, we have some tips you can follow below:

• Submitting full loan submission packages for non-delegated submission can get you a first pass approval, and quicker turn time!
• With a first pass approval, there are no follow-up submissions for missing documentation.
• You can add efficiencies to your process by following documentation requirements – outlined in our checklist to help remind you!
• If your loan submission has AUS findings, be sure to include the appropriate findings, and send the required documentation based on the findings.
• If you want to add notes to the underwriter regarding documentation, please use the “notes to underwriter” on the Enact MI site, or the notes section in your LOS submission.
• We have a staff of seasoned underwriters to review your non-delegated loan submissions from 8:00 AM – 8:00 PM. They’re ready to help!

While these tips are not exhaustive, they are good measures for you to take and implement into your process. Making your job easier and more efficient is important to us! Plus, we’re always here to help you if anything comes up and you need assistance.

What is the required documentation for non-delegated submissions?

The best tip of all is understanding what you and your borrowers need for a non-delegated loan submission the first time around! Preparing what documentation you need up front can not only save you and your borrowers time, you can strengthen your relationships with your borrowers too! The following is a non-exhaustive list of commonly required documentation for non-delegated loan submissions:

Borrower Application and Findings:

• URLA (Uniform Residential Loan Application, 1003)
• 1008 (Uniform Underwriting & Transmittal Summary)
• AUS findings/feedback

Credit:

• Credit Reports
• Verification of Mortgage and/or Rent
• Credit Explanation Letter(s)
• Evidence of Payoffs & Tax Lien Satisfaction
• Closing Disclosure (Sale of Previous Property)
• Related Public Records

Income:

• Pay Stubs & W-2s
• Verifications of Employment
• Retirement/Social Security/Pensions
• Military Information
• Rental/Lease Agreements (Owned Property)

OR AUS Income Validation Service Results Documentation

Tax Returns:

• Personal and/or Corporate, as applicable

Assets:

• Bank & Brokerage Statements
• Verification of Deposits
• Check Copies for Earnest Money Deposits
• Gift Letters & Proof of Receipt

OR AUS Asset Validation Service Results Documentation

Appraisal:

• All Appraisal Docs, including License &Clear Photos
• Condo/PUD Information

Sales Contract:

• Executed Contract & Supporting Documents

Other:

• Divorce, Separation, Child Support Agreements
• Any Documents used to make Underwriting Decisions

Quality underwriting is always in demand! Access the Submitting an MI application (Full Package) Flier to reference this information when you’re working with non-delegated submissions.

More ways we can help

When you’re working with non-delegated loans and submitting a MI application with us, know that you can rely on us to help you through the process. Be sure to get information about our underwriting guidelines and timely underwriting tips anytime on our website.

We offer many resources to help you gain new skills and identify tools to better educate and work with your borrowers. And, since going the extra mile comes naturally for us, we also provide insightful training resources to help you continue to stay sharp in the industry.

Be sure to make the most of your MI experience too. If you need some extra insight, you can always contact your Enact Sales Rep for more info. They’ll be happy to help you meet your business needs, answer questions, and point you in the right direction.

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